StepStone (US:STEP)2025-11-06 21:09Financial Performance - Total revenues for the three months ended September 30, 2024, were $271.7 million, a 67% increase compared to the same period last year[7]. - Total performance fees reached $86.9 million for the quarter, representing a 175% increase year-over-year[7]. - Net income for the quarter was $53.1 million, a significant recovery from a net loss of $287.2 million in the same quarter last year[7]. - Total revenues for the three months ended September 30, 2025, were $454.225 million, a 67.2% increase from $271.677 million in the same period of 2024[18]. - Management and advisory fees, net, increased to $215.489 million for the three months ended September 30, 2025, compared to $184.758 million in the same period of 2024, reflecting a growth of 16.6%[18]. - Total carried interest allocations for the three months ended September 30, 2025, reached $206.691 million, significantly up from $69.847 million in the same period of 2024, marking a 195.5% increase[18]. - Total revenues for the six months ended September 30, 2024, were $271,677,000, with adjusted revenues of $208,788,000[27]. - Adjusted net income (ANI) for the six months ended September 30, 2025, was $115.2 million, compared to $110.8 million in the previous year[56]. - Total performance fees for the six months ended September 30, 2025, amounted to $391.9 million, up from $95.3 million in the previous year[52]. Assets Under Management - StepStone Group reported total capital of approximately $771 billion, including $209 billion in assets under management as of September 30, 2025[4]. - Assets under management (AUM) increased to $176.1 billion, reflecting a 19% growth compared to the previous year[7]. - Fee-earning AUM increased to $132.8 million as of September 30, 2025, reflecting a 27% increase year-over-year[61]. - Total assets under management (AUM) increased to $209,147 million by June 30, 2025, marking a 19% growth from the prior quarter[65]. - The company reported a total of $283,034 million in AUA for private equity, an 11% increase from the previous quarter[65]. Dividends - The company declared a quarterly cash dividend of $0.28 per share of Class A common stock, payable on December 15, 2025[1]. - The company declared a quarterly dividend of $0.24 per share, consistent with the previous quarter, and a supplemental dividend of $0.40 per share, marking a 167% increase from the prior year[7]. Strategic Focus and Client Base - StepStone focuses on providing customized investment solutions and advisory services across private equity, infrastructure, private debt, and real estate asset classes[4]. - StepStone's clients include large public and private pension funds, sovereign wealth funds, and high-net-worth individuals[4]. - StepStone's strategic focus includes developing private markets portfolios tailored to client objectives[4]. Financial Transparency and Reporting - The financial results are supplemented by non-GAAP measures such as fee revenues and adjusted net income, which are not calculated in accordance with GAAP[6]. - The company is committed to providing detailed financial information and reconciliations for non-GAAP measures to enhance transparency[6]. - The company emphasizes the importance of understanding the risks and uncertainties that could affect future performance, as outlined in their annual report[5]. - StepStone's management anticipates continued growth and successful execution of business strategies, although future results are inherently uncertain[5]. Shareholder Information - The weighted-average diluted shares increased by 13% year-over-year to 69.7 million shares[7]. - The weighted-average shares of Class A common stock for the three months ended September 30, 2025, were 78,561,587, an increase from 68,772,051 in the same period of 2024[18]. - The company reported a basic weighted-average share count of 78.2 million for the three months ended September 30, 2025[56]. Compensation and Expenses - The company reported accrued compensation and benefits of $1.826 billion as of September 30, 2025, compared to $736.695 million as of March 31, 2025[15]. - GAAP cash-based compensation for the six months ended September 30, 2024, was $82,871,000, with adjusted cash-based compensation of $82,586,000[33]. - GAAP general, administrative, and other expenses for the six months ended September 30, 2024, were $50,061,000, with adjusted expenses of $28,161,000[33]. Performance Fees and Earnings - Fee-related earnings (FRE) for the quarter were $72.3 million, with a FRE margin of 39%[7]. - Adjusted revenues for the six months ended September 30, 2024, were $429.9 million, a 35% increase year-over-year[7]. - Gross realized performance fees for the quarter were $23.3 million, a 178% increase compared to the same period last year[7]. - The FRE (Fee-Related Earnings) for the three months ended September 30, 2025, was $78,633, down from $81,246 in the previous quarter, representing a decrease of 3.0%[38]. - Performance fee-related earnings (PRE) for the six months ended September 30, 2025, reached $46.9 million, an increase from $36.3 million in the previous year[52].